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BREEAM In-Use Asset Selection

Certify the assets that create the greatest portfolio value

For large real estate portfolios, the question is rarely whether BREEAM In-Use certification has value. It is where certification should be deployed first.

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Sustainalytica helps investment managers identify the combination of assets that can deliver the greatest value from BREEAM In-Use certification.

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Our Asset Selection Model combines GRESB BC1.2, BREEAM certification feasibility, certified floor area, property subtype, geography, GAV, evidence availability, property management structures, planned asset upgrades and investment strategy to create a prioritised certification programme.​

​The objective is not to maximise certificate count. It is to identify where certification can have the greatest portfolio impact and where it can be delivered most efficiently.

Built from experience at portfolio scale

Our Asset Selection Model is informed by experience delivering GRESB programmes covering more than £10 billion of real estate, alongside the strategy and implementation of large-scale international BREEAM certification programmes.

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We also bring direct experience of BREEAM strategy and implementation across every BREEAM National Scheme Operator (NSO). That combination matters.

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  • BREEAM determines whether an individual asset can achieve the required certification outcome.

  • GRESB considers operational building certification within the wider portfolio.

  • Investment strategy determines where certification creates commercial value.

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Sustainalytica brings those perspectives together.​

Portfolio value × BREEAM feasibility × investment alignment = certification priority

A portfolio strategy.
Not an asset list.

A portfolio may contain dozens or hundreds of potentially certifiable assets. They should not automatically be approached in sequence or selected simply because they appear easiest to assess.

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The value and feasibility of certification can differ materially according to:

  • property subtype and geography;

  • gross internal area and certifiable floor area;

  • portfolio GAV;

  • existing certification coverage;

  • BREEAM minimum requirements;

  • availability and quality of evidence;

  • property and facilities management structures;

  • landlord and tenant responsibilities;

  • planned capital expenditure;

  • operational improvement programmes; and

  • the investment strategy for the asset.

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Asset Selection brings these variables together before full BREEAM assessments are commissioned.

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This allows certification expenditure to be directed towards the assets where it can work hardest.

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The Sustainalytica Asset Selection Model

Our model evaluates each candidate asset across three connected dimensions.

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1. Portfolio value

First, we establish where certification matters.

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For portfolios reporting to GRESB, this includes understanding existing operational certification coverage and identifying where additional certification can have the greatest effect.

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Our analysis can consider:

  • GRESB BC1.2;

  • property type and subtype;

  • country;

  • GAV;

  • GIA and certifiable floor area;

  • ownership;

  • existing certification coverage;

  • certificate age and recertification requirements; and

  • the relative significance of different portfolio segments.

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The result is a portfolio-level view of certification opportunity rather than an arbitrary list of candidate buildings.

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2. BREEAM feasibility

We then establish which assets can efficiently achieve certification.

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Our BREEAM In-Use screening considers:

  • scheme eligibility;

  • applicable minimum standards;

  • target BREEAM rating;

  • likely assessment performance;

  • evidence availability and quality;

  • property management arrangements;

  • facilities management structures;

  • landlord and tenant responsibilities;

  • metering and operational information;

  • existing policies and procedures;

  • physical constraints;

  • planned upgrades; and

  • the likely cost and complexity of resolving identified gaps.

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This is an important distinction.

 

A large asset may appear strategically attractive from a portfolio perspective but represent a poor certification candidate if fundamental BREEAM requirements cannot readily be achieved.

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Conversely, a missing document or management procedure should not automatically eliminate an otherwise valuable asset if the gap can be efficiently resolved.

3. Investment alignment

Finally, we consider why the asset is held and what is planned for it.

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Certification strategy should support the investment strategy, not sit alongside it.

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We therefore consider factors including:

  • Core, Core+ or Value Add strategy;

  • asset business plans;

  • planned capital expenditure;

  • refurbishment and repositioning;

  • hold period;

  • acquisition or disposal strategy;

  • investor commitments;

  • fund-level ESG objectives;

  • GRESB strategy; and

  • target certification level.

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Combining these three dimensions identifies assets with the strongest balance of portfolio impact, certification feasibility and investment relevance.

From selection to certification

Asset Selection translates portfolio data into a practical certification roadmap.

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Assets are prioritised according to their portfolio value, BREEAM feasibility and investment alignment, allowing certification budgets to be focused where they can have the greatest impact.

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Depending on the outcome, assets can:

  • proceed directly to BREEAM In-Use certification;

  • undergo a BREEAM In-Use Quick Scan where further analysis is required;

  • be improved before certification; or

  • be deprioritised where the cost or complexity outweighs the portfolio benefit.

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For larger eligible programmes, we can also assess whether the formal BREEAM In-Use Portfolio Approach can reduce certification costs.

Built around the asset business plan

Asset Selection considers not only how a building performs today, but where it is going.

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Core

For stabilised Core assets, priorities may include maintaining certification coverage, protecting existing credentials and efficiently addressing portfolio gaps.

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Core+

For Core+ assets, targeted operational or physical improvements may unlock certification or improve the achievable rating.

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Value Add

For Value Add assets, planned refurbishment, plant replacement, metering upgrades or repositioning can materially change certification potential.

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This allows the timing and target of BREEAM certification to align with planned capital expenditure and the wider asset business plan.

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The best asset to certify is not necessarily the easiest. It is the asset where certification best supports the investment strategy.

International portfolios, one strategic view

International portfolios require more than applying the same certification strategy in every market.

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Sustainalytica brings direct experience of BREEAM strategy and implementation across every BREEAM National Scheme Operator.

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We combine that international experience with a consistent portfolio methodology, allowing investment managers to identify certification priorities across different property types, jurisdictions and BREEAM schemes.

Why Sustainalytica?

BREEAM In-Use Asset Selection sits at the intersection of building performance, GRESB and real estate investment strategy.

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Our experience combines:

  • £10bn+ of real estate covered through GRESB programme delivery;

  • BREEAM strategy and implementation across every BREEAM National Scheme Operator;

  • leadership of large-scale international BREEAM certification programmes; and

  • architectural, technical and institutional real estate expertise.

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The result is a certification strategy built around the portfolio, rather than a sequence of individual assessments.

Frequently asked questions

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